What other rights or remedies are available to Aira Fitness under the Uniform Commercial Code?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) if Debtor abandons, surrenders or transfers control of the operation of the Aira Fitness Business without Secured Party's prior written consent; or
- (e) if Debtor is a corporation, limited liability company, partnership, joint venture or other legal entity, any action is taken which purports to merge, consolidate, dissolve or liquidate Debtor without the prior written consent of Secured Party.
- 3.2. Remedies. Upon the occurrence of an Event of Default, all amounts payable to Secured Party shall become immediately due and payable and Secured Party shall have all the rights and remedies of a secured party under the Uniform Commercial Code as in effect in the state or states in which the Collateral may be located, including, but not limited to, the right to enter upon the Aira Fitness Business peaceably and remove all Collateral. Secured Party shall give Debtor reasonable notice of the time and place of any public or private sale or other intended disposition of all or any particular Collateral, as the case may be. Debtor agrees that the requirement of reasonable notice shall be met if notice is mailed to Debtor at its address first above written not less than five (5) business days prior to the sale or other disposition. Expenses of retaking, holding, preparing for sale, selling or the like, shall include, without limitation, Secured Party's reasonable attorneys' fees and other legal expenses. Secured Party's rights and remedies, whether pursuant hereto or pursuant to the Illinois Uniform Commercial Code or any other statute or rule of law conferring rights similar to those conferred by the Illinois Uniform Commercial Code, shall be cumulative and not alternative.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, in the event of a default by the franchisee, Aira Fitness has specific rights and remedies under the Uniform Commercial Code (UCC). If the franchisee (referred to as 'Debtor') abandons, surrenders, or transfers control of the Aira Fitness Business without Aira Fitness's (referred to as 'Secured Party') prior written consent, or if the franchisee takes action to merge, consolidate, dissolve, or liquidate without Aira Fitness's consent, it constitutes an event of default. Upon such an event, all amounts payable to Aira Fitness become immediately due.
Aira Fitness, as the secured party, is entitled to all rights and remedies available under the UCC in the state where the collateral (assets of the Aira Fitness Business) is located. These remedies include the right to peaceably enter the Aira Fitness Business and remove all collateral. Aira Fitness must provide the franchisee with reasonable notice of any public or private sale or disposition of the collateral, and the agreement specifies that a notice mailed to the franchisee's address at least five business days prior to the sale is considered reasonable.
The expenses associated with retaking, holding, preparing for sale, and selling the collateral, including reasonable attorneys' fees and other legal expenses, are the responsibility of the franchisee. The rights and remedies available to Aira Fitness under the agreement, the Illinois Uniform Commercial Code, or any other similar statute are cumulative and not alternative, meaning Aira Fitness can pursue multiple remedies simultaneously. This section of the FDD outlines Aira Fitness's security interest in the franchisee's business assets and the actions Aira Fitness can take to protect its investment in case of a default.